Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Jun. 30, 2014 | Aug. 04, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'MOTORCAR PARTS AMERICA INC | ' |
Entity Central Index Key | '0000918251 | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 15,086,888 |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
Current assets: | ' | ' |
Cash | $24,692,000 | $24,599,000 |
Short-term investments | 549,000 | 521,000 |
Accounts receivable - net | 7,955,000 | 22,283,000 |
Inventory - net | 47,471,000 | 47,246,000 |
Inventory unreturned | 7,328,000 | 7,534,000 |
Deferred income taxes | 18,864,000 | 18,767,000 |
Prepaid expenses and other current assets | 3,532,000 | 4,316,000 |
Total current assets | 110,391,000 | 125,266,000 |
Plant and equipment - net | 11,224,000 | 11,025,000 |
Long-term core inventory - net | 149,420,000 | 143,476,000 |
Long-term core inventory deposits | 29,638,000 | 29,375,000 |
Long-term deferred income taxes | 2,630,000 | 2,614,000 |
Intangible assets - net | 3,064,000 | 3,244,000 |
Other assets | 3,910,000 | 3,853,000 |
TOTAL ASSETS | 310,277,000 | 318,853,000 |
Current liabilities: | ' | ' |
Accounts payable | 51,721,000 | 59,509,000 |
Accrued liabilities | 5,310,000 | 8,316,000 |
Customer finished goods returns accrual | 15,387,000 | 16,251,000 |
Revolving loan | 10,000,000 | 10,000,000 |
Other current liabilities | 2,499,000 | 1,270,000 |
Current portion of term loan | 7,843,000 | 7,843,000 |
Total current liabilities | 92,760,000 | 103,189,000 |
Term loan, less current portion | 77,640,000 | 79,434,000 |
Deferred core revenue | 15,115,000 | 15,065,000 |
Other liabilities | 10,443,000 | 11,529,000 |
Total liabilities | 195,958,000 | 209,217,000 |
Commitments and contingencies | ' | ' |
Statement [Line Items] | ' | ' |
Preferred stock | 0 | 0 |
Common stock; par value $.01 per share, 50,000,000 shares authorized; 15,082,645 and 15,067,645 shares issued and outstanding at June 30, 2014 and March 31, 2014, respectively | 151,000 | 151,000 |
Additional paid-in capital | 121,232,000 | 120,553,000 |
Accumulated other comprehensive loss | -822,000 | -877,000 |
Accumulated deficit | -6,242,000 | -10,191,000 |
Total shareholders' equity | 114,319,000 | 109,636,000 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 310,277,000 | 318,853,000 |
Series A junior participating preferred stock [Member] | ' | ' |
Statement [Line Items] | ' | ' |
Preferred stock | $0 | $0 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
Shareholders' equity: | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, issued (in shares) | 15,082,645 | 15,067,645 |
Common stock, outstanding (in shares) | 15,082,645 | 15,067,645 |
Series A Junior Participating Preferred Stock [Member] | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, authorized (in shares) | 20,000 | 20,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Consolidated Statements of Income (Unaudited) [Abstract] | ' | ' |
Net sales | $62,975,000 | $50,245,000 |
Cost of goods sold | 45,159,000 | 34,231,000 |
Gross profit | 17,816,000 | 16,014,000 |
Operating expenses: | ' | ' |
General and administrative | 5,392,000 | 9,632,000 |
Sales and marketing | 1,826,000 | 1,731,000 |
Research and development | 522,000 | 549,000 |
Total operating expenses | 7,740,000 | 11,912,000 |
Operating income | 10,076,000 | 4,102,000 |
Interest expense, net | 3,413,000 | 3,925,000 |
Income from continuing operations before income tax expense | 6,663,000 | 177,000 |
Income tax expense | 2,714,000 | 74,000 |
Income from continuing operations | 3,949,000 | 103,000 |
Income from discontinued operations | 0 | 100,877,000 |
Net income | $3,949,000 | $100,980,000 |
Basic net income per share from continuing operations (in dollars per share) | $0.26 | $0.01 |
Basic net income per share from discontinued operations (in dollars per share) | $0 | $6.97 |
Basic net income per share (in dollars per share) | $0.26 | $6.98 |
Diluted net income per share from continuing operations (in dollars per share) | $0.25 | $0.01 |
Diluted net income per share from discontinued operations (in dollars per share) | $0 | $6.90 |
Diluted net income per share (in dollars per share) | $0.25 | $6.91 |
Weighted average number of shares outstanding: | ' | ' |
Basic (in shares) | 15,082,818 | 14,460,979 |
Diluted (in shares) | 15,921,367 | 14,609,464 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Consolidated Statements of Comprehensive Income (Unaudited) [Abstract] | ' | ' |
Net income | $3,949,000 | $100,980,000 |
Other comprehensive income, net of tax: | ' | ' |
Unrealized gain on short-term investments (net of tax of $7,000 and $0) | 10,000 | 0 |
Foreign currency translation gain | 45,000 | 12,000 |
Total other comprehensive income, net of tax | 55,000 | 12,000 |
Comprehensive income | $4,004,000 | $100,992,000 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Other comprehensive income, net of tax: | ' | ' |
Unrealized gain on short-term investments, tax | $7,000 | $0 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash flows from operating activities: | ' | ' |
Net income | $3,949,000 | $100,980,000 |
Less income from discontinued operations | 0 | 100,877,000 |
Income from continuing operations | 3,949,000 | 103,000 |
Adjustments to reconcile net income from continuing operations to net cash provided by (used in) operating activities: | ' | ' |
Depreciation | 453,000 | 541,000 |
Amortization of intangible assets | 180,000 | 192,000 |
Amortization of debt issuance costs | 419,000 | 453,000 |
(Gain) loss due to change in fair value of warrant liability | -1,114,000 | 1,570,000 |
Provision for inventory reserves | 735,000 | 511,000 |
Net recovery of customer payment discrepancies | -25,000 | -47,000 |
Net (recovery of) provision for doubtful accounts | -13,000 | 65,000 |
Deferred income taxes | -114,000 | 13,000 |
Share-based compensation expense | 498,000 | 125,000 |
Changes in current assets and liabilities: | ' | ' |
Accounts receivable | 14,367,000 | 3,937,000 |
Inventory | -235,000 | 1,297,000 |
Inventory unreturned | 206,000 | -551,000 |
Prepaid expenses and other current assets | 738,000 | -1,328,000 |
Other assets | -118,000 | -118,000 |
Accounts payable and accrued liabilities | -10,804,000 | -5,371,000 |
Customer finished goods returns accrual | -863,000 | 256,000 |
Deferred core revenue | 50,000 | 158,000 |
Long-term core inventory | -6,668,000 | -4,799,000 |
Long-term core inventory deposits | -263,000 | -195,000 |
Other liabilities | 1,259,000 | 116,000 |
Net cash provided by (used in) operating activities from continuing operations | 2,637,000 | -3,072,000 |
Net cash provided by operating activities from discontinued operations | 0 | 979,000 |
Net cash provided by (used in) operating activities | 2,637,000 | -2,093,000 |
Cash flows from investing activities: | ' | ' |
Purchase of plant and equipment | -610,000 | -381,000 |
Change in short term investments | -11,000 | -10,000 |
Net cash used in investing activities from continuing operations | -621,000 | -391,000 |
Net cash used in investing activities from discontinued operations | 0 | -295,000 |
Net cash used in investing activities | -621,000 | -686,000 |
Cash flows from financing activities: | ' | ' |
Repayments of term loan | -2,100,000 | -600,000 |
Payments on capital lease obligations | -13,000 | -64,000 |
Exercise of stock options | 180,000 | 0 |
Net cash used in financing activities from continuing operations | -1,933,000 | -664,000 |
Net cash used in financing activities from discontinued operations | 0 | -772,000 |
Net cash used in financing activities | -1,933,000 | -1,436,000 |
Effect of exchange rate changes on cash | 10,000 | -28,000 |
Net increase (decrease) in cash | 93,000 | -4,243,000 |
Cash - Beginning of period from continuing operations | 24,599,000 | 19,346,000 |
Cash - Beginning of period from discontinued operations | 0 | 88,000 |
Cash - End of period | 24,692,000 | 15,191,000 |
Less Cash - End of period from discontinued operations | 0 | 0 |
Cash - End of period from continuing operations | 24,692,000 | 15,191,000 |
Cash paid during the period for: | ' | ' |
Interest | 3,030,000 | 3,473,000 |
Income taxes, net of refunds | $200,000 | $98,000 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2015. This report should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended March 31, 2014, which are included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on June 16, 2014, as amended by the Form 10-K/A filed with the SEC on July 29, 2014. | |
The accompanying consolidated financial statements have been prepared on a consistent basis with, and there have been no material changes to, the accounting policies described in Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements that are presented in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2014. |
Company_Background_and_Organiz
Company Background and Organization | 3 Months Ended |
Jun. 30, 2014 | |
Company Background and Organization [Abstract] | ' |
Company Background and Organization | ' |
1. Company Background and Organization | |
Motorcar Parts of America, Inc. and its subsidiaries (the “Company”, or “MPA”) is a leading manufacturer, remanufacturer, and distributor of aftermarket automotive parts. These replacement parts are sold for use on vehicles after initial vehicle purchase. These automotive parts are sold to automotive retail chain stores and warehouse distributors throughout North America and to major automobile manufacturers. The Company’s products include rotating electrical products such as alternators and starters and wheel hub assemblies and bearings. | |
The Company obtains used automotive parts, commonly known as Used Cores, primarily from its customers under the Company’s core exchange program. It also purchases Used Cores from vendors (core brokers). The customers grant credit to the consumer when the used part is returned to them, and the Company in turn provides a credit to the customers upon return to the Company. These Used Cores are an essential material needed for the remanufacturing operations. | |
The Company has remanufacturing, warehousing and shipping/receiving operations for automotive parts in North America and Asia. In addition, the Company utilizes various third party warehouse distribution centers in North America. | |
The Company has two operating segments: (i) wheel hub assemblies and bearings and (ii) rotating electrical products which consist of alternators and starters. Pursuant to the guidance provided under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), for segment reporting the Company has determined that these operating segments meet the criteria for aggregation and accordingly the Company has one reportable segment for purposes of recording and reporting its financial results. |
Discontinued_Operations
Discontinued Operations | 3 Months Ended |
Jun. 30, 2014 | |
Discontinued Operations [Abstract] | ' |
Discontinued Operations and Deconsolidation of Fenco | ' |
2. Discontinued Operations | |
In May 2011, the Company purchased (i) all of the outstanding equity of Fenwick Automotive Products Limited (“FAPL”), (ii) all of the outstanding equity of Introcan, Inc., a Delaware corporation (“Introcan”), and (iii) 1% of the outstanding equity of Fapco S.A. de C.V., a Mexican variable capital company (“Fapco”) (collectively, “Fenco” and also referred to herein as the “discontinued subsidiary”). Since FAPL owned 99% of Fapco prior to these acquisitions, the Company owned 100% of Fapco. | |
Between May 2011 and its bankruptcy in June 2013, Fenco had been attempting to turn around its business. However, revenues generated by its undercar product line segment were not sufficient to enable Fenco to meet its operating expenses and otherwise implement its undercar product line turnaround plan. Fenco had recurring operating losses since the date of acquisition and had a working capital and equity deficiency. | |
In May 2013, FAPL appointed a new board of independent directors, hired an independent chief restructuring officer and all its previously existing officers resigned from FAPL. As a result of loss of control of Fenco, the Company deconsolidated the assets and liabilities of Fenco from its consolidated financial statements effective May 31, 2013. On June 10, 2013, each of FAPL, Introcan and Introcan’s subsidiaries, Flo-Pro Inc., LH Distribution Inc., Rafko Logistics Inc., Rafko Holdings Inc. and Rafko Enterprises Inc. (collectively, the “Fenco Entities”), filed a voluntary petition for relief under Chapter 7 of Title 11 of the United States Code (the “Bankruptcy Code”) in the U.S. Bankruptcy Court for the District of Delaware. As a result of the loss of control of Fenco and the subsequent filing of the petition for relief under the Bankruptcy Code, Fenco had effectively been disposed of and the Company did not and does not retain any continuing involvement in the operations of Fenco. The Company may be subject to claims relating to the bankruptcy (see Note 15). | |
The Company’s income from discontinued operations was $100,877,000 during the three months ended June 30, 2013 and consisted of (i) a $118,095,000 gain on the deconsolidation of the discontinued subsidiary, including an income tax benefit of $1,374,000, (ii) a loss of approximately $20,464,000 in connection with the guarantee of obligations to certain suppliers of the discontinued subsidiary partly offset by income tax benefits of $9,156,000, and (iii) net sales of approximately $14,140,000 and the resulting loss of approximately $5,910,000 incurred by the discontinued subsidiary from April 1, 2013 to May 31, 2013. |
Intangible_Assets
Intangible Assets | 3 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Intangible Assets [Abstract] | ' | |||||||||||||||||
Intangible Assets | ' | |||||||||||||||||
3. Intangible Assets | ||||||||||||||||||
The following is a summary of the intangible assets subject to amortization at June 30, 2014 and March 31, 2014: | ||||||||||||||||||
30-Jun-14 | 31-Mar-14 | |||||||||||||||||
Weighted | Gross Carrying | Accumulated | Gross | Accumulated | ||||||||||||||
Average | Value | Amortization | Carrying | Amortization | ||||||||||||||
Amortization | Value | |||||||||||||||||
Period | ||||||||||||||||||
Intangible assets subject to amortization | ||||||||||||||||||
Trademarks | 9 years | $ | 553,000 | $ | 402,000 | $ | 553,000 | $ | 391,000 | |||||||||
Customer relationships | 12 years | 6,464,000 | 3,554,000 | 6,464,000 | 3,393,000 | |||||||||||||
Non-compete agreements | 5 years | 257,000 | 254,000 | 257,000 | 246,000 | |||||||||||||
Total | 11 years | $ | 7,274,000 | $ | 4,210,000 | $ | 7,274,000 | $ | 4,030,000 | |||||||||
Amortization expense for acquired intangible assets is as follows: | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
June 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Amortization expense | $ | 180,000 | $ | 192,000 | ||||||||||||||
The estimated future amortization expense for intangible assets subject to amortization is as follows: | ||||||||||||||||||
Year Ending March 31, | ||||||||||||||||||
2015 - remaining nine months | $ | 490,000 | ||||||||||||||||
2016 | 349,000 | |||||||||||||||||
2017 | 266,000 | |||||||||||||||||
2018 | 266,000 | |||||||||||||||||
2019 | 266,000 | |||||||||||||||||
Thereafter | 1,427,000 | |||||||||||||||||
Total | $ | 3,064,000 |
Accounts_Receivable_Net
Accounts Receivable - Net | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounts Receivable - Net [Abstract] | ' | ||||||||
Accounts Receivable - Net | ' | ||||||||
4. Accounts Receivable — Net | |||||||||
Included in accounts receivable — net are significant offset accounts related to customer allowances earned, customer payment discrepancies, returned goods authorizations (“RGA”) issued for in-transit unit returns, estimated future credits to be provided for Used Cores returned by the customers and potential bad debts. Due to the forward looking nature and the different aging periods of certain estimated offset accounts, the offset accounts may not, at any point in time, directly relate to the balances in the accounts receivable-trade account. | |||||||||
Accounts receivable — net is comprised of the following: | |||||||||
30-Jun-14 | 31-Mar-14 | ||||||||
Accounts receivable — trade | $ | 44,341,000 | $ | 58,766,000 | |||||
Allowance for bad debts | (841,000 | ) | (854,000 | ) | |||||
Customer allowances earned | (7,554,000 | ) | (9,088,000 | ) | |||||
Customer payment discrepancies | (415,000 | ) | (577,000 | ) | |||||
Customer returns RGA issued | (5,134,000 | ) | (5,809,000 | ) | |||||
Customer core returns accruals | (22,442,000 | ) | (20,155,000 | ) | |||||
Less: total accounts receivable offset accounts | (36,386,000 | ) | (36,483,000 | ) | |||||
Total accounts receivable — net | $ | 7,955,000 | $ | 22,283,000 | |||||
Warranty Returns | |||||||||
The Company allows its customers to return goods to the Company that their end-user customers have returned to them, whether the returned item is or is not defective (warranty returns). The Company accrues an estimate of its exposure to warranty returns based on a historical analysis of the level of this type of return as a percentage of total unit sales. Amounts charged to expense for these warranty returns are considered in arriving at the Company’s net sales. At June 30, 2014 and March 31, 2014, the Company’s total warranty return accrual was $7,048,000 and $8,039,000, respectively, of which $2,433,000 and $2,407,000 was included in the customer returns RGA issued balance in the above table for expected credits to be issued against accounts receivable and $4,615,000 and $5,632,000, respectively, was included in the customer finished goods returns accrual in the consolidated balance sheets for estimated future warranty returns. | |||||||||
Change in the Company’s warranty return accrual for continuing operations is as follows: | |||||||||
Three Months Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Balance at beginning of period | $ | 8,039,000 | $ | 6,205,000 | |||||
Charged to expense | 13,007,000 | 11,368,000 | |||||||
Amounts processed | (13,998,000 | ) | (12,271,000 | ) | |||||
Balance at end of period | $ | 7,048,000 | $ | 5,302,000 |
Inventory
Inventory | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory [Abstract] | ' | ||||||||
Inventory | ' | ||||||||
5. Inventory | |||||||||
Inventory is comprised of the following: | |||||||||
30-Jun-14 | 31-Mar-14 | ||||||||
Non-core inventory | |||||||||
Raw materials | $ | 18,084,000 | $ | 18,787,000 | |||||
Work-in-process | 239,000 | 124,000 | |||||||
Finished goods | 30,902,000 | 30,197,000 | |||||||
49,225,000 | 49,108,000 | ||||||||
Less allowance for excess and obsolete inventory | (1,754,000 | ) | (1,862,000 | ) | |||||
Total | $ | 47,471,000 | $ | 47,246,000 | |||||
Inventory unreturned | $ | 7,328,000 | $ | 7,534,000 | |||||
Long-term core inventory | |||||||||
Used cores held at the Company's facilities | $ | 25,142,000 | $ | 23,718,000 | |||||
Used cores expected to be returned by customers | 5,857,000 | 6,160,000 | |||||||
Remanufactured cores held in finished goods | 20,139,000 | 18,093,000 | |||||||
Remanufactured cores held at customers' locations | 98,936,000 | 96,351,000 | |||||||
150,074,000 | 144,322,000 | ||||||||
Less allowance for excess and obsolete inventory | (654,000 | ) | (846,000 | ) | |||||
Total | $ | 149,420,000 | $ | 143,476,000 | |||||
Long-term core inventory deposits | $ | 29,638,000 | $ | 29,375,000 |
Major_Customers
Major Customers | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Major Customers [Abstract] | ' | ||||||||
Major Customers | ' | ||||||||
6. Major Customers | |||||||||
The Company’s largest customers accounted for the following total percentage of net sales from continuing operations: | |||||||||
Three Months Ended | |||||||||
June 30, | |||||||||
Sales | 2014 | 2013 | |||||||
Customer A | 53 | % | 44 | % | |||||
Customer B | 22 | % | 25 | % | |||||
Customer C | 5 | % | 10 | % | |||||
Customer D | 3 | % | 5 | % | |||||
The Company’s largest customers accounted for the following total percentage of accounts receivable—trade: | |||||||||
Accounts receivable - trade | 30-Jun-14 | 31-Mar-14 | |||||||
Customer A | 30 | % | 46 | % | |||||
Customer B | 25 | % | 12 | % | |||||
Customer C | 8 | % | 7 | % | |||||
Customer D | 10 | % | 10 | % | |||||
The Company’s largest supplier accounted for 13% of inventory purchases for the three months ended June 30, 2014. No suppliers accounted for more than 10% of inventory purchases for the three months ended June 30, 2013. |
Debt
Debt | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt [Abstract] | ' | ||||||||
Debt | ' | ||||||||
7. Debt | |||||||||
The Company has the following credit agreements. | |||||||||
Financing Agreement | |||||||||
The Company is party to a financing agreement, as amended, (the “Financing Agreement”) with a syndicate of lenders, Cerberus Business Finance, LLC (“Cerberus”), as collateral agent, and PNC Bank, National Association, as administrative agent. The loans made thereunder (the “Loans”) consist of: (i) term loans aggregating $95,000,000 (the “Term Loans”) and (ii) revolving loans of up to $30,000,000, subject to borrowing base restrictions and a $10,000,000 sublimit for letters of credit (the “Revolving Loans”). The Loans mature on November 6, 2018. In connection with the Financing Agreement, the lenders were granted a security interest in substantially all of the assets of the Company. In addition, the Company has the right, subject to meeting certain conditions, to repurchase up to $10,000,000 of the Company’s equity interests. | |||||||||
In June 2014, the Company entered into a first amendment to the Financing Agreement (the “First Amendment”), pursuant to which (i) the Revolving Loans were increased by $10,000,000 to $40,000,000 (the “Amended Revolving Loans”), (ii) the maximum amount of capital expenditures was increased to $7,000,000 for fiscal 2015, and $4,000,000 for each of fiscal 2016 and 2017, and (iii) certain other amendments and modifications were made. | |||||||||
The Term Loans require quarterly principal payments of $2,100,000 per quarter and bear interest at rates equal to, at the Company’s option, either LIBOR (subject to a 1.50% LIBOR floor) plus 5.25% or a reference rate plus 4.25%. The Amended Revolving Loans bear interest at rates equal to, at the Company’s option, either LIBOR plus 2.50% or a reference rate plus 1.00%. The interest rate on the Company’s Term Loans using the LIBOR option was 6.75% at June 30, 2014 and March 31, 2014, respectively. The interest rate on the Company’s revolving loans using the LIBOR option was 2.66% at June 30, 2014 and March 31, 2014, respectively. | |||||||||
The following summarizes information about the Company’s Term Loans at: | |||||||||
30-Jun-14 | 31-Mar-14 | ||||||||
Principal amount of term loan | $ | 90,800,000 | $ | 92,900,000 | |||||
Unamortized financing fees | (5,317,000 | ) | (5,623,000 | ) | |||||
Net carrying amount of term loan | $ | 85,483,000 | $ | 87,277,000 | |||||
Less current portion of term loan | (7,843,000 | ) | (7,843,000 | ) | |||||
Long-term portion of term loan | $ | 77,640,000 | $ | 79,434,000 | |||||
Future repayments of the Company’s Term Loans, by fiscal year, are as follows: | |||||||||
Year Ending March 31, | |||||||||
2015 - remaining nine months | $ | 6,300,000 | |||||||
2016 | 8,400,000 | ||||||||
2017 | 8,400,000 | ||||||||
2018 | 8,400,000 | ||||||||
2019 | 59,300,000 | ||||||||
Total payments | $ | 90,800,000 | |||||||
The Company may reduce or terminate the commitments of the lenders to make the Amended Revolving Loans or prepay the Term Loans in whole or in part, but such prepayments are subject to a prepayment penalty of 2.00% times the sum of the reduction of the revolving credit commitment plus the principal amount of any prepayment of the Term Loans through January 18, 2015. | |||||||||
The Financing Agreement, among other things, requires the Company to maintain certain financial covenants including a maximum senior leverage ratio, a minimum fixed charge coverage ratio, and minimum consolidated earnings before interest, income tax, depreciation and amortization expenses (“EBITDA”). The Company was in compliance with all financial covenants as of June 30, 2014. | |||||||||
The Company had borrowed $10,000,000 under the revolving loans at June 30, 2014 and March 31, 2014, respectively. In addition, the Company had reserved $476,000 for standby letters of credit for workers’ compensation insurance and $917,000 for commercial letters of credit as of June 30, 2014. As of June 30, 2014, $28,607,000, subject to certain adjustments, was available under the Amended Revolving Loans. | |||||||||
WX Agreement | |||||||||
In August 2012, the Company entered into a Revolving Credit/Strategic Cooperation Agreement (the “WX Agreement”) with Wanxiang America Corporation (the “Supplier”) and the discontinued subsidiary. Under the terms of the WX Agreement, the Supplier agreed to provide a revolving credit line for purchases of automotive parts and components by the discontinued subsidiary. In connection with the WX Agreement, the Company also issued a warrant (the “Supplier Warrant”) to the Supplier to purchase up to 516,129 shares of the Company’s common stock for an initial exercise price of $7.75 per share exercisable at any time after August 22, 2014 and on or prior to September 30, 2017. The exercise price is subject to adjustments, among other things, for sales of common stock by the Company at a price below the exercise price. | |||||||||
The fair value of the Supplier Warrant using the Monte Carlo simulation model was $8,933,000 and $10,047,000 at June 30, 2014 and March 31, 2014, respectively. This amount is recorded as a warrant liability which is included in other liabilities in the consolidated balance sheets at June 30, 2014 and March 31, 2014. During the three months ended June 30, 2014 and 2013, a gain of $1,114,000 and a loss of $1,140,000, respectively, were recorded in general and administrative expenses due to the change in the fair value of this warrant liability. |
Accounts_Receivable_Discount_P
Accounts Receivable Discount Programs | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounts Receivable Discount Programs [Abstract] | ' | ||||||||
Accounts Receivable Discount Programs | ' | ||||||||
8. Accounts Receivable Discount Programs | |||||||||
The Company uses receivable discount programs with certain customers and their respective banks. Under these programs, the Company may sell those customers’ receivables to those banks at a discount to be agreed upon at the time the receivables are sold. These discount arrangements allow the Company to accelerate collection of customers’ receivables. | |||||||||
The following is a summary of the Company’s accounts receivable discount programs for continuing operations: | |||||||||
Three Months Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Receivables discounted | $ | 68,608,000 | $ | 44,208,000 | |||||
Weighted average days | 337 | 332 | |||||||
Annualized weighted average discount rate | 2 | % | 2.4 | % | |||||
Amount of discount as interest expense | $ | 1,292,000 | $ | 978,000 |
Net_Income_Per_Share
Net Income Per Share | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Net Income Per Share [Abstract] | ' | ||||||||
Net Income (Loss) Per Share | ' | ||||||||
9. Net Income Per Share | |||||||||
Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share includes the effect, if any, from the potential exercise or conversion of securities, such as stock options and warrants, which would result in the issuance of incremental shares of common stock. | |||||||||
The following presents a reconciliation of basic and diluted net income per share. | |||||||||
Three Months Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Income from continuing operations | $ | 3,949,000 | $ | 103,000 | |||||
Income from discontinued operations | - | 100,877,000 | |||||||
Net income | $ | 3,949,000 | $ | 100,980,000 | |||||
Basic shares | 15,082,818 | 14,460,979 | |||||||
Effect of dilutive stock options and warrants | 838,549 | 148,485 | |||||||
Diluted shares | 15,921,367 | 14,609,464 | |||||||
Net income per share: | |||||||||
Basic net income per share from continuing operations | $ | 0.26 | $ | 0.01 | |||||
Basic net income per share from discontinued operations | - | 6.97 | |||||||
Basic net income per share | $ | 0.26 | $ | 6.98 | |||||
Diluted net income per share from continuing operations | $ | 0.25 | $ | 0.01 | |||||
Diluted net income per share from discontinued operations | - | 6.9 | |||||||
Diluted net income per share | $ | 0.25 | $ | 6.91 | |||||
The effect of dilutive options excludes 1,837 shares subject to options with an exercise price of $25.51 per share for the three months ended June 30, 2014 — which were anti-dilutive. The effect of dilutive options and warrants excludes 1,116,534 shares subject to options and 735,484 shares subject to warrants with exercise prices ranging from $7.27 to $15.06 per share for the three months ended June 30, 2013— all of which were anti-dilutive. |
Income_Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2014 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
10. Income Taxes | |
The Company recorded income tax expenses from continuing operations for the three months ended June 30, 2014 and 2013, of $2,714,000, or an effective tax rate of 40.7%, and $74,000, or an effective tax rate of 41.8%, respectively. The income tax rates were higher than the federal statutory rate primarily due to state income taxes, which were partially offset by the benefit of lower statutory tax rates in foreign taxing jurisdictions. In addition, the Company’s income tax rates for three months ended June 30, 2014 were positively impacted by a non-taxable gain in connection with the fair value adjustment on the warrants compared to a non-deductible loss for the three months ended June 30, 2013. | |
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions with varying statutes of limitations. At June 30, 2014, the Company continues to be under examination in the U.S. by the Internal Revenue Service for fiscal years 2011 through 2013 and by the State of California for fiscal years 2008 through 2010. The Company is not under examination in any other jurisdiction. The Company believes no significant changes in the unrecognized tax benefits will occur within the next 12 months. |
Financial_Risk_Management_and_
Financial Risk Management and Derivatives | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Financial Risk Management and Derivatives [Abstract] | ' | ||||||||
Financial Risk Management and Derivatives | ' | ||||||||
11. Financial Risk Management and Derivatives | |||||||||
Purchases and expenses denominated in currencies other than the U.S. dollar, which are primarily related to the Company’s facilities overseas, expose the Company to market risk from material movements in foreign exchange rates between the U.S. dollar and the foreign currency. The Company’s primary risk exposure is from fluctuations in the value of the Mexican peso and to a lesser extent the Chinese yuan. To mitigate these risks, the Company enters into forward foreign currency exchange contracts to exchange U.S. dollars for these foreign currencies. The extent to which forward foreign currency exchange contracts are used is modified periodically in response to the Company’s estimate of market conditions and the terms and length of anticipated requirements. | |||||||||
The Company enters into forward foreign currency exchange contracts in order to reduce the impact of foreign currency fluctuations and not to engage in currency speculation. The use of derivative financial instruments allows the Company to reduce its exposure to the risk that the eventual cash outflow resulting from funding the expenses of the foreign operations will be materially affected by changes in exchange rates. The Company does not hold or issue financial instruments for trading purposes. The forward foreign currency exchange contracts are designated for forecasted expenditure requirements to fund foreign operations. | |||||||||
The Company had forward foreign currency exchange contracts with a U.S. dollar equivalent notional value of $18,153,000 and $17,796,000 at June 30, 2014 and March 31, 2014, respectively. These contracts generally expire in a year or less, at rates agreed at the inception of the contracts. The counterparty to this derivative transaction is a major financial institution with investment grade or better credit rating; however, the Company is exposed to credit risk with this institution. The credit risk is limited to the potential unrealized gains (which offset currency fluctuations adverse to the Company) in any such contract should this counterparty fail to perform as contracted. Any changes in the fair values of forward foreign currency exchange contracts are reflected in current period earnings and accounted for as an increase or offset to general and administrative expenses. | |||||||||
The following table shows the effect of the Company’s derivative instruments on its consolidated statements of income: | |||||||||
Gain (Loss) Recognized within General and Administrative Expenses | |||||||||
Three Months Ended | |||||||||
Derivatives Not Designated as | June 30, | ||||||||
Hedging Instruments | 2014 | 2013 | |||||||
Forward foreign currency exchange contracts | $ | 233,000 | $ | (733,000 | ) | ||||
The fair value of the forward foreign currency exchange contracts of $74,000 is included in prepaid expenses and other current assets in the consolidated balance sheet at June 30, 2014. The fair value of the forward foreign currency exchange contracts of $159,000 is included in other current liabilities in the consolidated balance sheet at March 31, 2014. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||||||||||
12. Fair Value Measurements | |||||||||||||||||||||||||||||||||
The following table summarizes the Company’s financial assets and liabilities measured at fair value, by level within the fair value hierarchy as of June 30, 2014 and March 31, 2014: | |||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Mar-14 | ||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||||||||||
Using Inputs Considered as | Using Inputs Considered as | ||||||||||||||||||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Short-term investments | |||||||||||||||||||||||||||||||||
Mutual funds | $ | 549,000 | $ | 549,000 | - | - | $ | 521,000 | $ | 521,000 | - | - | |||||||||||||||||||||
Prepaid expenses and other current assets | |||||||||||||||||||||||||||||||||
Forward foreign currency exchange contracts | 74,000 | - | $ | 74,000 | - | - | - | - | - | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Other current liabilities | |||||||||||||||||||||||||||||||||
Deferred compensation | 549,000 | 549,000 | - | - | 521,000 | 521,000 | - | - | |||||||||||||||||||||||||
Forward foreign currency exchange contracts | - | - | - | - | 159,000 | - | $ | 159,000 | - | ||||||||||||||||||||||||
Other liabilities | |||||||||||||||||||||||||||||||||
Warrant liability | 8,933,000 | - | - | $ | 8,933,000 | 10,047,000 | - | - | $ | 10,047,000 | |||||||||||||||||||||||
The Company’s short-term investments, which fund its deferred compensation liabilities, consist of investments in mutual funds. These investments are classified as Level 1 as the shares of these mutual funds trade with sufficient frequency and volume to enable the Company to obtain pricing information on an ongoing basis. | |||||||||||||||||||||||||||||||||
The forward foreign currency exchange contracts are primarily measured based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers. During the three months ended June 30, 2014 and 2013, a gain of $233,000 and a loss of $733,000, respectively, were recorded in general and administrative expenses due to the change in the value of the forward foreign currency exchange contracts subsequent to entering into the contracts. | |||||||||||||||||||||||||||||||||
The Company estimates the fair value of the warrant liability using level 3 inputs and the Monte Carlo simulation model at each balance sheet date.This amount is recorded as a warrant liability which is included in other liabilities in the consolidated balance sheets at June 30, 2014 and March 31, 2014. Any subsequent changes from the initial recognition in the fair value of the warrant liability are recorded in current period earnings as a general and administrative expense. During the three months ended June 30, 2014 and 2013, a gain of $1,114,000 and a loss of $1,570,000, respectively, were recorded in general and administrative expenses due to the change in the fair value of the warrant liability. | |||||||||||||||||||||||||||||||||
The assumptions used to determine the fair value of the Supplier Warrant recorded as warrant liability were: | |||||||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||||||
Risk free interest rate | 1.18 | % | |||||||||||||||||||||||||||||||
Expected life in years | 3.25 | ||||||||||||||||||||||||||||||||
Expected volatility | 47.4 | % | |||||||||||||||||||||||||||||||
Dividend yield | - | ||||||||||||||||||||||||||||||||
Probability of future financing | 0 | % | |||||||||||||||||||||||||||||||
The risk free interest rate used was based on U.S. treasury-note yields with terms commensurate with the remaining term of the warrant. The expected life is based on the remaining contractual term of the warrant and the expected volatility is based on the Company’s daily historical volatility over a period commensurate with the remaining term of the warrant. | |||||||||||||||||||||||||||||||||
A summary of the change to the Company’s warrant liability, as measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is presented below: | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
June 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 10,047,000 | $ | 2,014,000 | |||||||||||||||||||||||||||||
Newly issued | - | - | |||||||||||||||||||||||||||||||
Total (gain) loss included in net loss | (1,114,000 | ) | 1,570,000 | ||||||||||||||||||||||||||||||
Exercises/settlements | - | - | |||||||||||||||||||||||||||||||
Net transfers in (out) of Level 3 | - | - | |||||||||||||||||||||||||||||||
Ending balance | $ | 8,933,000 | $ | 3,584,000 | |||||||||||||||||||||||||||||
During the three months ended June 30, 2014, the Company had no significant measurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition. | |||||||||||||||||||||||||||||||||
The carrying amounts of cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value due to the short-term nature of these instruments. The carrying amounts of the revolving loans, term loans and other long-term liabilities approximate their fair value based on the variable nature of interest rates and current rates for instruments with similar characteristics. |
Stock_Options_and_Restricted_S
Stock Options and Restricted Stock Awards | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Stock Options and Restricted Stock Awards [Abstract] | ' | ||||||||
Stock Options and Restricted Stock Awards | ' | ||||||||
13. Stock Options and Restricted Stock Unit Awards | |||||||||
Stock Options | |||||||||
The Company granted options to purchase 82,537 and 6,000 shares of common stock during the three months ended June 30, 2014 and 2013, respectively. The cost associated with stock options is estimated using the Black-Scholes option-pricing model. The Black-Scholes option pricing model requires the input of subjective assumptions including the expected volatility of the underlying stock and the expected holding period of the option. These subjective assumptions are based on both historical and other information. Changes in the values assumed and used in the model can materially affect the estimate of fair value. | |||||||||
The table below summarizes the Black-Scholes option pricing model assumptions used to derive the weighted average fair value of the stock options granted during the periods noted. | |||||||||
Three Months Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Weighted average risk free interest rate | 1.75 | % | 1.39 | % | |||||
Weighted average expected holding period (years) | 5.01 | 7.01 | |||||||
Weighted average expected volatility | 46.02 | % | 44.21 | % | |||||
Weighted average expected dividend yield | - | - | |||||||
Weighted average fair value of options granted | $ | 9.65 | $ | 2.96 | |||||
A summary of stock option transactions for the three months ended June 30, 2014 follows: | |||||||||
Number of | Weighted Average | ||||||||
Shares | Exercise Price | ||||||||
Outstanding at March 31, 2014 | 1,426,968 | $ | 9.21 | ||||||
Granted | 82,537 | $ | 22.99 | ||||||
Exercised | - | $ | - | ||||||
Cancelled | (7,250 | ) | $ | 10.81 | |||||
Outstanding at June 30, 2014 | 1,502,255 | $ | 9.96 | ||||||
At June 30, 2014, options to purchase 933,016 shares of common stock were exercisable at the weighted average exercise price of $9.04. | |||||||||
A summary of changes in the status of non-vested stock options during the three months ended June 30, 2014 is presented below: | |||||||||
Number of | Weighted Average | ||||||||
Shares | Grant Date Fair | ||||||||
Value | |||||||||
Non-vested at March 31, 2014 | 490,702 | $ | 4.39 | ||||||
Granted | 82,537 | $ | 9.65 | ||||||
Vested | (4,000 | ) | $ | 3 | |||||
Cancelled | - | $ | - | ||||||
Non-vested at June 30, 2014 | 569,239 | $ | 5.16 | ||||||
At June 30, 2014, there was $2,301,000 of total unrecognized compensation expense from stock-based compensation granted under the plans, which is related to non-vested shares. The compensation expense is expected to be recognized over a weighted average vesting period of approximately 1.9 years. | |||||||||
Restricted Stock Units (“RSU’s”) | |||||||||
During the three months ended June 30, 2014, the Company granted 95,645 RSU’s with an estimated grant date fair value of $2,316,000, which is based on the closing market price on the date of grant. The Company did not grant any RSU’s during the three months ended June 30, 2013. These awards generally vest in three equal installments beginning each anniversary from the grant date, subject to continued employment. The fair value related to the RSU’s will be recognized as compensation expense over the vesting period. | |||||||||
Number of | Weighted Average | ||||||||
Shares | Grant Date Fair | ||||||||
Value | |||||||||
Non-vested RSU's at March 31, 2014 | 138,000 | $ | 9.32 | ||||||
RSU's granted | 95,645 | $ | 24.21 | ||||||
RSU's vested | (4,400 | ) | $ | 22.93 | |||||
RSU's cancelled | - | $ | - | ||||||
Non-vested RSU's at June 30, 2014 | 229,245 | $ | 15.27 | ||||||
As of June 30, 2014, there was $3,171,000 of unrecognized compensation expense related to RSU’s, which will be recognized over the remaining vesting period of approximately 2.5 years. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||
14. Accumulated Other Comprehensive Income (Loss) | |||||||||||||
The changes in accumulated other comprehensive income (loss) for the three months ended June 30, 2014: | |||||||||||||
Unrealized gain | |||||||||||||
on Short-Term | Foreign Currency | ||||||||||||
Investments | Translation | Total | |||||||||||
Balance as of April 1, 2014 | $ | 321,000 | $ | (1,198,000 | ) | $ | (877,000 | ) | |||||
Other comprehensive income (loss), net of tax | 10,000 | 45,000 | 55,000 | ||||||||||
Amounts reclassified from other comprehensive income (loss), net of tax | - | - | - | ||||||||||
Balance as of June 30, 2014 | $ | 331,000 | $ | (1,153,000 | ) | $ | (822,000 | ) | |||||
The changes in accumulated other comprehensive income (loss) for the three months ended June 30, 2013: | |||||||||||||
Unrealized gain | |||||||||||||
on Short-Term | Foreign Currency | ||||||||||||
Investments | Translation | Total | |||||||||||
Balance as of April 1, 2013 | $ | 287,000 | $ | (1,133,000 | ) | $ | (846,000 | ) | |||||
Other comprehensive income (loss), net of tax | - | 12,000 | 12,000 | ||||||||||
Amounts reclassified from other comprehensive income (loss), net of tax | - | - | - | ||||||||||
Balance as of June 30, 2013 | $ | 287,000 | $ | (1,121,000 | ) | $ | (834,000 | ) |
Litigation
Litigation | 3 Months Ended |
Jun. 30, 2014 | |
Litigation [Abstract] | ' |
Litigation | ' |
15. Litigation | |
There have been and may be additional claims filed against the Company by the trustee and some or all of the creditors in connection with the bankruptcy proceedings involving the Fenco Entities. For example, the trustee has notified the Company’s insurance companies that it may have claims for wrongful acts, breach of fiduciary duty, civil conspiracy, aiding and abetting, negligence and conversion. The Company is also a defendant in a case in Ontario Superior Court and in a case in the District Court for the District of Delaware claiming that the Company is liable for amounts due by the Fenco Entities to their employees under U.S. and Canadian law. Any litigation to determine the validity of these claims, regardless of their merit or resolution, may be costly and time consuming and divert the efforts and attention of the Company’s management from its business strategy. Any adverse judgment or settlement by the Company of these claims will also result in additional expense. | |
The Company is also subject to various other lawsuits and claims in the normal course of business. Management does not believe that the outcome of these matters will have a material adverse effect on its financial position or future results of operations. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Jun. 30, 2014 | |
New Accounting Pronouncements [Abstract] | ' |
New Accounting Pronouncements | ' |
16. New Accounting Pronouncements | |
Income Taxes | |
In July 2013, the FASB issued guidance that requires entities to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward when settlement in this manner is available under the tax law and the Company intends to use the deferred tax asset for that purpose. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2013. The adoption of this guidance did not have any impact on the Company’s financial position, results of operations or cash flows. | |
Discontinued Operations | |
In April 2014, the FASB issued guidance on reporting discontinued operations. The new guidance changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The standard is required to be adopted by public business entities in annual periods beginning on or after December 15, 2014, and interim periods within those annual periods. The adoption of this guidance is not expected to have a material impact on the Company’s financial position, results of operations or cash flows. | |
Revenue Recognition | |
In May 2014, the FASB issued an amendment to the accounting guidance related to revenue recognition. The amendment was the result of a joint project between the FASB and the International Accounting Standards Board ("IASB") to clarify the principles for recognizing revenue and to develop common revenue standards for U.S. GAAP and International Financial Reporting Standards ("IFRS"). To meet those objectives, the FASB is amending the FASB ASC and creating a new Topic 606, Revenue from Contracts with Customers, and the IASB is issuing IFRS 15, Revenue from Contracts with Customers. The new guidance is effective prospectively for annual periods beginning after December 15, 2016, and interim periods within those years. Early application is not permitted. The Company is evaluating the impact of adopting this guidance to its consolidated financial statements. |
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Intangible Assets [Abstract] | ' | |||||||||||||||||
Intangible assets subject to amortization | ' | |||||||||||||||||
The following is a summary of the intangible assets subject to amortization at June 30, 2014 and March 31, 2014: | ||||||||||||||||||
30-Jun-14 | 31-Mar-14 | |||||||||||||||||
Weighted | Gross Carrying | Accumulated | Gross | Accumulated | ||||||||||||||
Average | Value | Amortization | Carrying | Amortization | ||||||||||||||
Amortization | Value | |||||||||||||||||
Period | ||||||||||||||||||
Intangible assets subject to amortization | ||||||||||||||||||
Trademarks | 9 years | $ | 553,000 | $ | 402,000 | $ | 553,000 | $ | 391,000 | |||||||||
Customer relationships | 12 years | 6,464,000 | 3,554,000 | 6,464,000 | 3,393,000 | |||||||||||||
Non-compete agreements | 5 years | 257,000 | 254,000 | 257,000 | 246,000 | |||||||||||||
Total | 11 years | $ | 7,274,000 | $ | 4,210,000 | $ | 7,274,000 | $ | 4,030,000 | |||||||||
Amortization expense for acquired intangible assets | ' | |||||||||||||||||
Amortization expense for acquired intangible assets is as follows: | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
June 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Amortization expense | $ | 180,000 | $ | 192,000 | ||||||||||||||
Estimated future amortization expense for intangible assets | ' | |||||||||||||||||
The estimated future amortization expense for intangible assets subject to amortization is as follows: | ||||||||||||||||||
Year Ending March 31, | ||||||||||||||||||
2015 - remaining nine months | $ | 490,000 | ||||||||||||||||
2016 | 349,000 | |||||||||||||||||
2017 | 266,000 | |||||||||||||||||
2018 | 266,000 | |||||||||||||||||
2019 | 266,000 | |||||||||||||||||
Thereafter | 1,427,000 | |||||||||||||||||
Total | $ | 3,064,000 |
Accounts_Receivable_Net_Tables
Accounts Receivable - Net (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounts Receivable - Net [Abstract] | ' | ||||||||
Schedule of accounts receivable | ' | ||||||||
Accounts receivable — net is comprised of the following: | |||||||||
30-Jun-14 | 31-Mar-14 | ||||||||
Accounts receivable — trade | $ | 44,341,000 | $ | 58,766,000 | |||||
Allowance for bad debts | (841,000 | ) | (854,000 | ) | |||||
Customer allowances earned | (7,554,000 | ) | (9,088,000 | ) | |||||
Customer payment discrepancies | (415,000 | ) | (577,000 | ) | |||||
Customer returns RGA issued | (5,134,000 | ) | (5,809,000 | ) | |||||
Customer core returns accruals | (22,442,000 | ) | (20,155,000 | ) | |||||
Less: total accounts receivable offset accounts | (36,386,000 | ) | (36,483,000 | ) | |||||
Total accounts receivable — net | $ | 7,955,000 | $ | 22,283,000 | |||||
Schedule of warranty return accrual | ' | ||||||||
Change in the Company’s warranty return accrual for continuing operations is as follows: | |||||||||
Three Months Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Balance at beginning of period | $ | 8,039,000 | $ | 6,205,000 | |||||
Charged to expense | 13,007,000 | 11,368,000 | |||||||
Amounts processed | (13,998,000 | ) | (12,271,000 | ) | |||||
Balance at end of period | $ | 7,048,000 | $ | 5,302,000 |
Inventory_Tables
Inventory (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory [Abstract] | ' | ||||||||
Schedule of Inventory | ' | ||||||||
Inventory is comprised of the following: | |||||||||
30-Jun-14 | 31-Mar-14 | ||||||||
Non-core inventory | |||||||||
Raw materials | $ | 18,084,000 | $ | 18,787,000 | |||||
Work-in-process | 239,000 | 124,000 | |||||||
Finished goods | 30,902,000 | 30,197,000 | |||||||
49,225,000 | 49,108,000 | ||||||||
Less allowance for excess and obsolete inventory | (1,754,000 | ) | (1,862,000 | ) | |||||
Total | $ | 47,471,000 | $ | 47,246,000 | |||||
Inventory unreturned | $ | 7,328,000 | $ | 7,534,000 | |||||
Long-term core inventory | |||||||||
Used cores held at the Company's facilities | $ | 25,142,000 | $ | 23,718,000 | |||||
Used cores expected to be returned by customers | 5,857,000 | 6,160,000 | |||||||
Remanufactured cores held in finished goods | 20,139,000 | 18,093,000 | |||||||
Remanufactured cores held at customers' locations | 98,936,000 | 96,351,000 | |||||||
150,074,000 | 144,322,000 | ||||||||
Less allowance for excess and obsolete inventory | (654,000 | ) | (846,000 | ) | |||||
Total | $ | 149,420,000 | $ | 143,476,000 | |||||
Long-term core inventory deposits | $ | 29,638,000 | $ | 29,375,000 |
Major_Customers_Tables
Major Customers (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Major Customers [Abstract] | ' | ||||||||
Schedule of largest customers | ' | ||||||||
The Company’s largest customers accounted for the following total percentage of net sales from continuing operations: | |||||||||
Three Months Ended | |||||||||
June 30, | |||||||||
Sales | 2014 | 2013 | |||||||
Customer A | 53 | % | 44 | % | |||||
Customer B | 22 | % | 25 | % | |||||
Customer C | 5 | % | 10 | % | |||||
Customer D | 3 | % | 5 | % | |||||
The Company’s largest customers accounted for the following total percentage of accounts receivable—trade: | |||||||||
Accounts receivable - trade | 30-Jun-14 | 31-Mar-14 | |||||||
Customer A | 30 | % | 46 | % | |||||
Customer B | 25 | % | 12 | % | |||||
Customer C | 8 | % | 7 | % | |||||
Customer D | 10 | % | 10 | % |
Debt_Tables
Debt (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt [Abstract] | ' | ||||||||
Summarized information about the term loan | ' | ||||||||
The following summarizes information about the Company’s Term Loans at: | |||||||||
30-Jun-14 | 31-Mar-14 | ||||||||
Principal amount of term loan | $ | 90,800,000 | $ | 92,900,000 | |||||
Unamortized financing fees | (5,317,000 | ) | (5,623,000 | ) | |||||
Net carrying amount of term loan | $ | 85,483,000 | $ | 87,277,000 | |||||
Less current portion of term loan | (7,843,000 | ) | (7,843,000 | ) | |||||
Long-term portion of term loan | $ | 77,640,000 | $ | 79,434,000 | |||||
Future repayments of the Amended Term Loan, by fiscal year | ' | ||||||||
Future repayments of the Company’s Term Loans, by fiscal year, are as follows: | |||||||||
Year Ending March 31, | |||||||||
2015 - remaining nine months | $ | 6,300,000 | |||||||
2016 | 8,400,000 | ||||||||
2017 | 8,400,000 | ||||||||
2018 | 8,400,000 | ||||||||
2019 | 59,300,000 | ||||||||
Total payments | $ | 90,800,000 |
Accounts_Receivable_Discount_P1
Accounts Receivable Discount Programs (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounts Receivable Discount Programs [Abstract] | ' | ||||||||
Schedule of accounts receivable discount programs | ' | ||||||||
The following is a summary of the Company’s accounts receivable discount programs for continuing operations: | |||||||||
Three Months Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Receivables discounted | $ | 68,608,000 | $ | 44,208,000 | |||||
Weighted average days | 337 | 332 | |||||||
Annualized weighted average discount rate | 2 | % | 2.4 | % | |||||
Amount of discount as interest expense | $ | 1,292,000 | $ | 978,000 |
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Net Income Per Share [Abstract] | ' | ||||||||
Schedule of reconciliation of basic and diluted net loss per share | ' | ||||||||
The following presents a reconciliation of basic and diluted net income per share. | |||||||||
Three Months Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Income from continuing operations | $ | 3,949,000 | $ | 103,000 | |||||
Income from discontinued operations | - | 100,877,000 | |||||||
Net income | $ | 3,949,000 | $ | 100,980,000 | |||||
Basic shares | 15,082,818 | 14,460,979 | |||||||
Effect of dilutive stock options and warrants | 838,549 | 148,485 | |||||||
Diluted shares | 15,921,367 | 14,609,464 | |||||||
Net income per share: | |||||||||
Basic net income per share from continuing operations | $ | 0.26 | $ | 0.01 | |||||
Basic net income per share from discontinued operations | - | 6.97 | |||||||
Basic net income per share | $ | 0.26 | $ | 6.98 | |||||
Diluted net income per share from continuing operations | $ | 0.25 | $ | 0.01 | |||||
Diluted net income per share from discontinued operations | - | 6.9 | |||||||
Diluted net income per share | $ | 0.25 | $ | 6.91 |
Financial_Risk_Management_and_1
Financial Risk Management and Derivatives (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Financial Risk Management and Derivatives [Abstract] | ' | ||||||||
Schedule of derivative instruments on consolidated statements of operations | ' | ||||||||
The following table shows the effect of the Company’s derivative instruments on its consolidated statements of income: | |||||||||
Gain (Loss) Recognized within General and Administrative Expenses | |||||||||
Three Months Ended | |||||||||
Derivatives Not Designated as | June 30, | ||||||||
Hedging Instruments | 2014 | 2013 | |||||||
Forward foreign currency exchange contracts | $ | 233,000 | $ | (733,000 | ) |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||||||||||||||||||||
Financial assets and liabilities measured at fair value recurring basis | ' | ||||||||||||||||||||||||||||||||
The following table summarizes the Company’s financial assets and liabilities measured at fair value, by level within the fair value hierarchy as of June 30, 2014 and March 31, 2014: | |||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Mar-14 | ||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||||||||||
Using Inputs Considered as | Using Inputs Considered as | ||||||||||||||||||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Short-term investments | |||||||||||||||||||||||||||||||||
Mutual funds | $ | 549,000 | $ | 549,000 | - | - | $ | 521,000 | $ | 521,000 | - | - | |||||||||||||||||||||
Prepaid expenses and other current assets | |||||||||||||||||||||||||||||||||
Forward foreign currency exchange contracts | 74,000 | - | $ | 74,000 | - | - | - | - | - | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Other current liabilities | |||||||||||||||||||||||||||||||||
Deferred compensation | 549,000 | 549,000 | - | - | 521,000 | 521,000 | - | - | |||||||||||||||||||||||||
Forward foreign currency exchange contracts | - | - | - | - | 159,000 | - | $ | 159,000 | - | ||||||||||||||||||||||||
Other liabilities | |||||||||||||||||||||||||||||||||
Warrant liability | 8,933,000 | - | - | $ | 8,933,000 | 10,047,000 | - | - | $ | 10,047,000 | |||||||||||||||||||||||
Assumptions used to determine fair value of warrant liability | ' | ||||||||||||||||||||||||||||||||
The assumptions used to determine the fair value of the Supplier Warrant recorded as warrant liability were: | |||||||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||||||
Risk free interest rate | 1.18 | % | |||||||||||||||||||||||||||||||
Expected life in years | 3.25 | ||||||||||||||||||||||||||||||||
Expected volatility | 47.4 | % | |||||||||||||||||||||||||||||||
Dividend yield | - | ||||||||||||||||||||||||||||||||
Probability of future financing | 0 | % | |||||||||||||||||||||||||||||||
Change in warrant liability measured at fair value recurring basis using significant unobservable inputs (level | ' | ||||||||||||||||||||||||||||||||
A summary of the change to the Company’s warrant liability, as measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is presented below: | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
June 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 10,047,000 | $ | 2,014,000 | |||||||||||||||||||||||||||||
Newly issued | - | - | |||||||||||||||||||||||||||||||
Total (gain) loss included in net loss | (1,114,000 | ) | 1,570,000 | ||||||||||||||||||||||||||||||
Exercises/settlements | - | - | |||||||||||||||||||||||||||||||
Net transfers in (out) of Level 3 | - | - | |||||||||||||||||||||||||||||||
Ending balance | $ | 8,933,000 | $ | 3,584,000 |
Stock_Options_and_Restricted_S1
Stock Options and Restricted Stock Awards (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Stock Options and Restricted Stock Awards [Abstract] | ' | ||||||||
Summary of Black-Scholes option pricing model assumptions used to derive weighted average fair value of stock options granted | ' | ||||||||
The table below summarizes the Black-Scholes option pricing model assumptions used to derive the weighted average fair value of the stock options granted during the periods noted. | |||||||||
Three Months Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Weighted average risk free interest rate | 1.75 | % | 1.39 | % | |||||
Weighted average expected holding period (years) | 5.01 | 7.01 | |||||||
Weighted average expected volatility | 46.02 | % | 44.21 | % | |||||
Weighted average expected dividend yield | - | - | |||||||
Weighted average fair value of options granted | $ | 9.65 | $ | 2.96 | |||||
Summary of stock option transactions | ' | ||||||||
A summary of stock option transactions for the three months ended June 30, 2014 follows: | |||||||||
Number of | Weighted Average | ||||||||
Shares | Exercise Price | ||||||||
Outstanding at March 31, 2014 | 1,426,968 | $ | 9.21 | ||||||
Granted | 82,537 | $ | 22.99 | ||||||
Exercised | - | $ | - | ||||||
Cancelled | (7,250 | ) | $ | 10.81 | |||||
Outstanding at June 30, 2014 | 1,502,255 | $ | 9.96 | ||||||
Summary of changes in the status of non-vested stock options | ' | ||||||||
A summary of changes in the status of non-vested stock options during the three months ended June 30, 2014 is presented below: | |||||||||
Number of | Weighted Average | ||||||||
Shares | Grant Date Fair | ||||||||
Value | |||||||||
Non-vested at March 31, 2014 | 490,702 | $ | 4.39 | ||||||
Granted | 82,537 | $ | 9.65 | ||||||
Vested | (4,000 | ) | $ | 3 | |||||
Cancelled | - | $ | - | ||||||
Non-vested at June 30, 2014 | 569,239 | $ | 5.16 | ||||||
Schedule of restricted stock units activity | ' | ||||||||
During the three months ended June 30, 2014, the Company granted 95,645 RSU’s with an estimated grant date fair value of $2,316,000, which is based on the closing market price on the date of grant. The Company did not grant any RSU’s during the three months ended June 30, 2013. These awards generally vest in three equal installments beginning each anniversary from the grant date, subject to continued employment. The fair value related to the RSU’s will be recognized as compensation expense over the vesting period. | |||||||||
Number of | Weighted Average | ||||||||
Shares | Grant Date Fair | ||||||||
Value | |||||||||
Non-vested RSU's at March 31, 2014 | 138,000 | $ | 9.32 | ||||||
RSU's granted | 95,645 | $ | 24.21 | ||||||
RSU's vested | (4,400 | ) | $ | 22.93 | |||||
RSU's cancelled | - | $ | - | ||||||
Non-vested RSU's at June 30, 2014 | 229,245 | $ | 15.27 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||
The changes in accumulated other comprehensive income (loss) for the three months ended June 30, 2014: | |||||||||||||
Unrealized gain | |||||||||||||
on Short-Term | Foreign Currency | ||||||||||||
Investments | Translation | Total | |||||||||||
Balance as of April 1, 2014 | $ | 321,000 | $ | (1,198,000 | ) | $ | (877,000 | ) | |||||
Other comprehensive income (loss), net of tax | 10,000 | 45,000 | 55,000 | ||||||||||
Amounts reclassified from other comprehensive income (loss), net of tax | - | - | - | ||||||||||
Balance as of June 30, 2014 | $ | 331,000 | $ | (1,153,000 | ) | $ | (822,000 | ) | |||||
The changes in accumulated other comprehensive income (loss) for the three months ended June 30, 2013: | |||||||||||||
Unrealized gain | |||||||||||||
on Short-Term | Foreign Currency | ||||||||||||
Investments | Translation | Total | |||||||||||
Balance as of April 1, 2013 | $ | 287,000 | $ | (1,133,000 | ) | $ | (846,000 | ) | |||||
Other comprehensive income (loss), net of tax | - | 12,000 | 12,000 | ||||||||||
Amounts reclassified from other comprehensive income (loss), net of tax | - | - | - | ||||||||||
Balance as of June 30, 2013 | $ | 287,000 | $ | (1,121,000 | ) | $ | (834,000 | ) |
Company_Background_and_Organiz1
Company Background and Organization (Details) | 3 Months Ended |
Jun. 30, 2014 | |
Segment | |
Company Background and Organization [Abstract] | ' |
Number of operating segments | 2 |
Number of reportable segments | 1 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 2 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | 31-May-13 | 6-May-11 | |
Fenco [Member] | Fapco [Member] | |||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Direct ownership interest acquired (in hundredths) | ' | ' | ' | 1.00% |
FAPL's ownership interest prior to acquisition (in hundredths) | ' | ' | ' | 99.00% |
Combined direct and indirect ownership interest subsequent to acquisition (in hundredths) | ' | ' | ' | 100.00% |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Income from discontinued operations | $0 | $100,877,000 | ' | ' |
Gain from deconsolidation of Fenco | ' | ' | 118,095,000 | ' |
Net sales | ' | ' | 14,140,000 | ' |
Operating losses | ' | ' | 5,910,000 | ' |
Income tax benefit from discontinued operations | ' | ' | 1,374,000 | ' |
Loss in connection with guarantee of obligations to Fenco suppliers | ' | ' | 20,464,000 | ' |
Income tax benefit from discontinued operations related to guarantee of obligations to certain Fenco suppliers | ' | ' | $9,156,000 | ' |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Mar. 31, 2014 | |
Intangible assets subject to amortization [Abstract] | ' | ' |
Weighted Average Amortization Period | '11 years | ' |
Gross Carrying Value | $7,274,000 | $7,274,000 |
Accumulated Amortization | 4,210,000 | 4,030,000 |
Trademarks [Member] | ' | ' |
Intangible assets subject to amortization [Abstract] | ' | ' |
Weighted Average Amortization Period | '9 years | ' |
Gross Carrying Value | 553,000 | 553,000 |
Accumulated Amortization | 402,000 | 391,000 |
Customer Relationships [Member] | ' | ' |
Intangible assets subject to amortization [Abstract] | ' | ' |
Weighted Average Amortization Period | '12 years | ' |
Gross Carrying Value | 6,464,000 | 6,464,000 |
Accumulated Amortization | 3,554,000 | 3,393,000 |
Non-compete Agreements [Member] | ' | ' |
Intangible assets subject to amortization [Abstract] | ' | ' |
Weighted Average Amortization Period | '5 years | ' |
Gross Carrying Value | 257,000 | 257,000 |
Accumulated Amortization | $254,000 | $246,000 |
Intangible_Assets_Amortization
Intangible Assets, Amortization Expense (Details) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Amortization and impairment of intangible assets [Abstract] | ' | ' |
Amortization expense | $180,000 | $192,000 |
Estimated future amortization expense for intangible assets subject to amortization [Abstract] | ' | ' |
2015 - remaining nine months | 490,000 | ' |
2016 | 349,000 | ' |
2017 | 266,000 | ' |
2018 | 266,000 | ' |
2019 | 266,000 | ' |
Thereafter | 1,427,000 | ' |
Total | $3,064,000 | ' |
Accounts_Receivable_Net_Detail
Accounts Receivable - Net (Details) (USD $) | 3 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | |
Accounts Receivable - Net [Abstract] | ' | ' | ' |
Accounts receivable - trade | $44,341,000 | ' | $58,766,000 |
Allowance for bad debts | -841,000 | ' | -854,000 |
Customer allowances earned | -7,554,000 | ' | -9,088,000 |
Customer payment discrepancies | -415,000 | ' | -577,000 |
Customer returns RGA issued | -5,134,000 | ' | -5,809,000 |
Customer core returns accruals | -22,442,000 | ' | -20,155,000 |
Less: total accounts receivable offset accounts | -36,386,000 | ' | -36,483,000 |
Total accounts receivable - net | 7,955,000 | ' | 22,283,000 |
Warranty Returns [Abstract] | ' | ' | ' |
Warranty accrual included in customer returns RGA issued | 2,433,000 | ' | 2,407,000 |
Warranty accrual included in customer finished goods returns accrual | 4,615,000 | ' | 5,632,000 |
Change in warranty return accrual [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 8,039,000 | 6,205,000 | ' |
Charged to expense | 13,007,000 | 11,368,000 | ' |
Amounts processed | -13,998,000 | -12,271,000 | ' |
Balance at end of period | $7,048,000 | $5,302,000 | ' |
Inventory_Details
Inventory (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
Non-core inventory [Abstract] | ' | ' |
Raw materials | $18,084,000 | $18,787,000 |
Work-in-process | 239,000 | 124,000 |
Finished goods | 30,902,000 | 30,197,000 |
Non-core inventory, gross | 49,225,000 | 49,108,000 |
Less allowance for excess and obsolete inventory | -1,754,000 | -1,862,000 |
Total | 47,471,000 | 47,246,000 |
Inventory unreturned | 7,328,000 | 7,534,000 |
Long-term core inventory [Abstract] | ' | ' |
Used cores held at the Company's facilities | 25,142,000 | 23,718,000 |
Used cores expected to be returned by customers | 5,857,000 | 6,160,000 |
Remanufactured cores held in finished goods | 20,139,000 | 18,093,000 |
Remanufactured cores held at customers' locations | 98,936,000 | 96,351,000 |
Long-term core inventory - gross | 150,074,000 | 144,322,000 |
Less allowance for excess and obsolete inventory | -654,000 | -846,000 |
Total | 149,420,000 | 143,476,000 |
Long-term core inventory deposits | $29,638,000 | $29,375,000 |
Major_Customers_Details
Major Customers (Details) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||
Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | |
Supplier | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Accounts Receivable - Trade [Member] | Accounts Receivable - Trade [Member] | Accounts Receivable - Trade [Member] | Accounts Receivable - Trade [Member] | Accounts Receivable - Trade [Member] | Accounts Receivable - Trade [Member] | Accounts Receivable - Trade [Member] | Accounts Receivable - Trade [Member] | Significant Supplier Purchases [Member] | |
Customer A [Member] | Customer A [Member] | Customer B [Member] | Customer B [Member] | Customer C [Member] | Customer C [Member] | Customer D [Member] | Customer D [Member] | Customer A [Member] | Customer A [Member] | Customer B [Member] | Customer B [Member] | Customer C [Member] | Customer C [Member] | Customer D [Member] | Customer D [Member] | Supplier A [Member] | ||
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration risk percentage (in hundredths) | ' | 53.00% | 44.00% | 22.00% | 25.00% | 5.00% | 10.00% | 3.00% | 5.00% | 30.00% | 46.00% | 25.00% | 12.00% | 8.00% | 7.00% | 10.00% | 10.00% | 13.00% |
Number of major suppliers | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Details
Debt (Details) (USD $) | 3 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Aug. 31, 2012 | |
Summarized information about the term loan [Abstract] | ' | ' | ' | ' |
Less current portion of term loan | ($7,843,000) | ' | ($7,843,000) | ' |
Long-term portion of term loan | 77,640,000 | ' | 79,434,000 | ' |
Future repayments of the Amended Term Loan, by fiscal year [Abstract] | ' | ' | ' | ' |
Total (gain) loss included in net loss | -1,114,000 | 1,570,000 | ' | ' |
Financing Agreement [Member] | ' | ' | ' | ' |
Maximum amount of capital expenditures by fiscal year [Abstract] | ' | ' | ' | ' |
2015 | 7,000,000 | ' | ' | ' |
2016 | 4,000,000 | ' | ' | ' |
2017 | 4,000,000 | ' | ' | ' |
Financing Agreement [Member] | Term Loans [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Maximum borrowing capacity | 95,000,000 | ' | ' | ' |
Debt instrument, maturity date | 6-Nov-18 | ' | ' | ' |
Maximum amount of equity interests that may be repurchased | 10,000,000 | ' | ' | ' |
Maximum amount of capital expenditures by fiscal year [Abstract] | ' | ' | ' | ' |
Quarterly principal payments | 2,100,000 | ' | ' | ' |
Reference interest rate under option 1 | 'LIBOR | ' | ' | ' |
Reference interest rate under option 1, floor (in hundredths) | 1.50% | ' | ' | ' |
Interest rate over LIBOR rate under option 1 (in hundredths) | 5.25% | ' | ' | ' |
Interest rate above base rate under option 2 (in hundredths) | 4.25% | ' | ' | ' |
Interest rate at end of period using LIBOR option (in hundredths) | 6.75% | ' | 6.75% | ' |
Summarized information about the term loan [Abstract] | ' | ' | ' | ' |
Principal amount of term loan | 90,800,000 | ' | 92,900,000 | ' |
Unamortized financing fees | -5,317,000 | ' | -5,623,000 | ' |
Net carrying amount of term loan | 85,483,000 | ' | 87,277,000 | ' |
Less current portion of term loan | -7,843,000 | ' | -7,843,000 | ' |
Long-term portion of term loan | 77,640,000 | ' | 79,434,000 | ' |
Future repayments of the Amended Term Loan, by fiscal year [Abstract] | ' | ' | ' | ' |
2015 - remaining nine months | 6,300,000 | ' | ' | ' |
2016 | 8,400,000 | ' | ' | ' |
2017 | 8,400,000 | ' | ' | ' |
2018 | 8,400,000 | ' | ' | ' |
2019 | 59,300,000 | ' | ' | ' |
Prepayment penalty (in hundredths) | 2.00% | ' | ' | ' |
Financing Agreement [Member] | Revolving Facility [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Maximum borrowing capacity | 30,000,000 | ' | ' | ' |
Debt instrument, maturity date | 6-Nov-18 | ' | ' | ' |
Maximum amount of capital expenditures by fiscal year [Abstract] | ' | ' | ' | ' |
Reference interest rate under option 1 | 'LIBOR | ' | ' | ' |
Interest rate over LIBOR rate under option 1 (in hundredths) | 2.50% | ' | ' | ' |
Interest rate above base rate under option 2 (in hundredths) | 1.00% | ' | ' | ' |
Interest rate at end of period using LIBOR option (in hundredths) | 2.66% | ' | 2.66% | ' |
Future repayments of the Amended Term Loan, by fiscal year [Abstract] | ' | ' | ' | ' |
Outstanding balance under revolving loan | 10,000,000 | ' | 10,000,000 | ' |
Amount available under revolving facility | 28,607,000 | ' | ' | ' |
Financing Agreement [Member] | Revolving Facility [Member] | Letter of Credit [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Maximum borrowing capacity | 10,000,000 | ' | ' | ' |
Financing Agreement [Member] | Revolving Facility [Member] | Commercial Letter Of Credit [Member] | ' | ' | ' | ' |
Future repayments of the Amended Term Loan, by fiscal year [Abstract] | ' | ' | ' | ' |
Outstanding balance under revolving loan | 917,000 | ' | ' | ' |
Financing Agreement [Member] | Revolving Facility [Member] | Standby Letters of Credit [Member] | ' | ' | ' | ' |
Future repayments of the Amended Term Loan, by fiscal year [Abstract] | ' | ' | ' | ' |
Outstanding balance under revolving loan | 476,000 | ' | ' | ' |
Financing Agreement [Member] | First Amendment [Member] | Revolving Facility [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Maximum borrowing capacity | 40,000,000 | ' | ' | ' |
Increase (decrease) in maximum borrowing capacity | 10,000,000 | ' | ' | ' |
WX Agreement [Member] | Supplier Warrant [Member] | ' | ' | ' | ' |
Future repayments of the Amended Term Loan, by fiscal year [Abstract] | ' | ' | ' | ' |
Number of shares that can be purchased under warrants (in shares) | ' | ' | ' | 516,129 |
Initial exercise price (in dollars per share) | ' | ' | ' | $7.75 |
Fair value of warrants issued | 8,933,000 | ' | 10,047,000 | ' |
Total (gain) loss included in net loss | ($1,114,000) | $1,140,000 | ' | ' |
Accounts_Receivable_Discount_P2
Accounts Receivable Discount Programs (Details) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Accounts Receivable Discount Programs [Abstract] | ' | ' |
Receivables discounted | $68,608,000 | $44,208,000 |
Weighted average days | '337 days | '332 days |
Annualized weighted average discount rate (in hundredths) | 2.00% | 2.40% |
Amount of discount as interest expense | $1,292,000 | $978,000 |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Net Income Per Share [Abstract] | ' | ' |
Income from continuing operations | $3,949,000 | $103,000 |
Income from discontinued operations | 0 | 100,877,000 |
Net income | $3,949,000 | $100,980,000 |
Basic (in shares) | 15,082,818 | 14,460,979 |
Effect of dilutive stock options and warrants (in shares) | 838,549 | 148,485 |
Diluted (in shares) | 15,921,367 | 14,609,464 |
Net income per share [Abstract] | ' | ' |
Basic net income per share from continuing operations (in dollars per share) | $0.26 | $0.01 |
Basic net income per share from discontinued operations (in dollars per share) | $0 | $6.97 |
Basic net income per share (in dollars per share) | $0.26 | $6.98 |
Diluted net income per share from continuing operations (in dollars per share) | $0.25 | $0.01 |
Diluted net income per share from discontinued operations (in dollars per share) | $0 | $6.90 |
Diluted net income per share (in dollars per share) | $0.25 | $6.91 |
Minimum [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Exercise price of antidilutive options and warrants (in dollars per share) | ' | $7.27 |
Maximum [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Exercise price of antidilutive options and warrants (in dollars per share) | ' | $15.06 |
Options [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive shares excluded from computation of earnings per share (in shares) | 1,837 | 1,116,534 |
Exercise price of antidilutive options and warrants (in dollars per share) | $25.51 | ' |
Warrants [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive shares excluded from computation of earnings per share (in shares) | ' | 735,484 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Income Taxes [Abstract] | ' | ' |
Income tax expenses from continuing operations | $2,714,000 | $74,000 |
Effective income tax rate (in hundredths) | 40.70% | 41.80% |
Financial_Risk_Management_and_2
Financial Risk Management and Derivatives (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
Forward Foreign Currency Exchange Contracts [Member] | Forward Foreign Currency Exchange Contracts [Member] | Forward Foreign Currency Exchange Contracts [Member] | Forward Foreign Currency Exchange Contracts [Member] | |||
General and Administrative Expenses [Member] | General and Administrative Expenses [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' |
Notional amount of foreign currency derivatives | ' | ' | $18,153,000 | $17,796,000 | ' | ' |
Forward foreign currency exchange contracts | ' | ' | ' | ' | 233,000 | -733,000 |
Forward foreign currency exchange contracts included in other current liabilities | ' | 159,000 | ' | ' | ' | ' |
Forward foreign currency exchange contracts included in prepaid expenses and other current assets | $74,000 | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 3 Months Ended | ||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | |
Forward Foreign Currency Exchange Contracts [Member] | Forward Foreign Currency Exchange Contracts [Member] | Warrant Liability [Member] | Warrant Liability [Member] | Supplier Warrant [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | |||
Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | ||||||||||
Short-term Investments [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mutual funds | ' | ' | ' | ' | ' | ' | ' | $549,000 | $521,000 | $549,000 | $521,000 | $0 | $0 | $0 | $0 |
Prepaid expenses and other current assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forward foreign currency exchange contracts | ' | ' | ' | ' | ' | ' | ' | 74,000 | 0 | 0 | 0 | 74,000 | 0 | 0 | 0 |
Other current liabilities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred compensation | ' | ' | ' | ' | ' | ' | ' | 549,000 | 521,000 | 549,000 | 521,000 | 0 | 0 | 0 | 0 |
Forward foreign currency exchange contracts | ' | ' | ' | ' | ' | ' | ' | 0 | 159,000 | 0 | 0 | 0 | 159,000 | 0 | 0 |
Other liabilities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant liability | ' | ' | ' | ' | ' | ' | ' | 8,933,000 | 10,047,000 | 0 | 0 | 0 | 0 | 8,933,000 | 10,047,000 |
Net gain (loss) on forward foreign currency exchange contracts | ' | ' | 233,000 | -733,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value assumptions of warrants [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk free interest rate (in hundredths) | ' | ' | ' | ' | ' | ' | 1.18% | ' | ' | ' | ' | ' | ' | ' | ' |
Expected life | ' | ' | ' | ' | ' | ' | '3 years 3 months | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility (in hundredths) | ' | ' | ' | ' | ' | ' | 47.40% | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend yield (in hundredths) | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Probability of future financing (in hundredths) | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Change in warrant liability measured at fair value recurring basis using significant unobservable inputs (Level 3) [Rollforward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | 10,047,000 | 2,014,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Newly issued | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total (gain) loss included in net loss | -1,114,000 | 1,570,000 | ' | ' | -1,114,000 | 1,570,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercises/settlements | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net transfers in (out) of Level 3 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance | $8,933,000 | $3,584,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock_Options_and_Restricted_S2
Stock Options and Restricted Stock Awards (Details) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Stock Options [Member] | ' | ' |
Summary of Black-Scholes option pricing model assumptions used to derive weighted average fair value of stock options granted [Abstract] | ' | ' |
Weighted average risk free interest rate (in hundredths) | 1.75% | 1.39% |
Weighted average expected holding period (years) | '5 years 0 months 4 days | '7 years 0 months 4 days |
Weighted average expected volatility (in hundredths) | 46.02% | 44.21% |
Weighted average expected dividend yield (in hundredths) | 0.00% | 0.00% |
Weighted average fair value of options granted (in dollars per share) | $9.65 | $2.96 |
Number of Shares [Roll Forward] | ' | ' |
Outstanding at beginning of period (in shares) | 1,426,968 | ' |
Granted (in shares) | 82,537 | 6,000 |
Exercised (in shares) | 0 | ' |
Cancelled (in shares) | -7,250 | ' |
Outstanding at end of period (in shares) | 1,502,255 | ' |
Weighted Average Exercise Price [Roll Forward] | ' | ' |
Outstanding at beginning of period (in dollars per share) | $9.21 | ' |
Granted (in dollars per share) | $22.99 | ' |
Exercised (in dollars per share) | $0 | ' |
Cancelled (in dollars per share) | $10.81 | ' |
Outstanding at end of period (in dollars per share) | $9.96 | ' |
Number of stock options exercisable (in shares) | 933,016 | ' |
Weighted average exercise price of stock options exercisable (in dollars per share) | $9.04 | ' |
Number of Shares [Roll Forward] | ' | ' |
Non-vested at beginning of period (in shares) | 490,702 | ' |
Granted (in shares) | 82,537 | 6,000 |
Vested (in shares) | -4,000 | ' |
Cancelled (in shares) | 0 | ' |
Non-vested at end of period (in shares) | 569,239 | ' |
Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' |
Non-vested at beginning of period (in dollars per share) | $4.39 | ' |
Granted (in dollars per share) | $9.65 | $2.96 |
Vested (in dollars per share) | $3 | ' |
Cancelled (in dollars per share) | $0 | ' |
Non-vested at end of period (in dollars per share) | $5.16 | ' |
Total unrecognized compensation expense | $2,301,000 | ' |
Weighted average vesting period over which compensation expense is expected to be recognized | '1 year 10 months 24 days | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' |
Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' |
Weighted average vesting period over which compensation expense is expected to be recognized | '2 years 6 months | ' |
Summary of restricted stock transactions [Abstract] | ' | ' |
Number of equal annual installments in which awards vest | 3 | ' |
Fair value to be recognized as compensation expense | 2,316,000 | ' |
Number of Shares [Roll Forward] | ' | ' |
Non-vested RSU's at beginning of period (in shares) | 138,000 | ' |
RSU's granted (in shares) | 95,645 | ' |
RSU's vested (in shares) | -4,400 | ' |
RSU's cancelled (in shares) | 0 | ' |
Non-vested RSU's at end of period (in shares) | 229,245 | ' |
Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' |
Non-vested RSU's at beginning of period (in dollars per share) | $9.32 | ' |
RSU's granted (in dollars per share) | $24.21 | ' |
RSU's vested (in dollars per share) | $22.93 | ' |
RSU's cancelled (in dollars per share) | $0 | ' |
Non-vested RSU's at end of period (in dollars per share) | $15.27 | ' |
Total unrecognized compensation expense | $3,171,000 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance as of beginning of period | ($877,000) | ($846,000) |
Other comprehensive income (loss), net of tax | 55,000 | 12,000 |
Amounts reclassified from other comprehensive income (loss), net of tax | 0 | 0 |
Balance as of end of period | -822,000 | -834,000 |
Unrealized gain on Short-Term Investments [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance as of beginning of period | 321,000 | 287,000 |
Other comprehensive income (loss), net of tax | 10,000 | 0 |
Amounts reclassified from other comprehensive income (loss), net of tax | 0 | 0 |
Balance as of end of period | 331,000 | 287,000 |
Foreign Currency Translation Gain (Loss) [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance as of beginning of period | -1,198,000 | -1,133,000 |
Other comprehensive income (loss), net of tax | 45,000 | 12,000 |
Amounts reclassified from other comprehensive income (loss), net of tax | 0 | 0 |
Balance as of end of period | ($1,153,000) | ($1,121,000) |